Save Article

Rate Cut Hopes Drive Nasdaq Higher

By

Emily Flitter

Updated Jan. 10, 2008 4:25 p.m. ET

The Nasdaq Composite Index finished higher after a volatile day Thursday, as investors took in remarks by Federal Reserve Chairman Ben Bernanke and grappled with the possibility of more write-downs by Citi and Merrill Lynch.

Investors grew confident after Mr. Bernanke spoke that the Fed would move for a 50 basis-point cut in interest rates later this month. Mr. Bernanke said the Fed would have to remain "flexible" and be ready to take "substantive" action to encourage growth. He also said that while the...